Brazil leads the way, JSE likely to follow

The Brazilian BOVESPA index is headed for another test of 48000. Reversal of 13-week Twiggs Money Flow below zero warns of further selling pressure. Failure of support would signal a down-swing to 38000*.

BOVESPA Index

* Target calculation: 48 – ( 58 – 48 ) = 38

South Africa’s JSE Overall Index fared better than most but is likely to be dragged lower by the global bear market. Expect a test of support at 28400; failure would signal a decline to 26000*.

Johannesburg Overall Index

* Target calculation: 28.5 – ( 31 – 28.5 ) = 26